Another day. Another young property investor

Go interstate.

 

Not when your rent is say 250 a week and your strata fee's could be close to 100 a week plus rates and management fee's...... (not saying that is his situation but I've seen that before)

 

All part of the buyers dd. the article doesn't need to include what undies he wears. How far does it need to go

 

This, can't say I've ever looked at the gross yield for any kind of genuine research because it tells you nothing.

I looked at a place as a possible PPOR to turn investment last year that was very reasonably priced until you ask for the strata of over 11k a year. It would have legitimately cost me more in strata per week to live there than it costs me to rent a comparable place and obviously decimated what was initially a really nice gross yield potential. Throw in council rates, water rates and insurances and it was actually an awful deal.

PS. This guy seems to have done a really nice job of slum lording at a very early age so credit to him.

Out of interest, does he live at home expense free as kind of indicated given how much he saved working at McDonalds, or does he pay market rent and his own expenses, it only mentions he lives with his mum and nothing on whether she was really the one who paid for his deposit.

 

Never looked at purchase price and rent? It is a pretty simple guide and indicator which you can then further investigate. But i guess everyone does this property **** differently.

Same for the article you can take it or leave it. You can investigate it further and fill in the gaps and pick it to bits. Old mate shared his achievements and may not or may not have disclosed every minute detail. He's done a bunch of stuff and isn't doing anyone any harm i dont think, even if he has rounded off some numbers. i really doubt Joe Donkey out there will read it and buy a 10 properties over night. Not possible is it, you need to have half a peanut up stairs

 

That's the first thing I do.
After I look at the pretty pictures of course.

 

Yea he work there . I guess he is following the path what Nathan is on . Nothing wrong with that nath seems to be doing pretty good for him self

 

For what I've seen on the Facebook page he works with nath so Iam sure he will be learning what nath does and yeah possible another nath in the making

 

That's interesting as it's the first thing I look at as it tells you lots.
Not for a ppor though.

 

I agree

Good on him

Wit the bold in red, I'm curious as to why the post then?

 

Experienced it in the previous similar posts. Most posts are critical yet value add, few are just plain negative.

 

Sure, I'm pretty sure I've already posted my numbers on here before. I would say i'm broadly comparable to the guy this article is about too, I'm 1 year older than him but from a similar socio-economic background.

Property 1:

• Bought late 2011
• House
• Purchase Price $430,000
• Bank Val: $520,000
• Market Val: $490,000
  
• Rent $450 pw (below market val. Still got 1st tenant)
• LVR against Bank Val: 61%
• Pos geared

Property 2:

• Bought late 2015
• Apartment
• Purchase Price $440,000
• Bank Val: $450,000 - 460,000, ask me next month once i re-fi
• Market Val: ? not sure, too early to say
• Lvr against Bank Val: Somewhere around the 75-80% mark
• Rent: $480 pw (probably a bit below market val, wanted a tenant in quick)
• probably neg pre tax, pos after tax

If we use dodgy banks vals I'm suspicious I've got more equity than him.
Other quick facts:

• I make under $100k
• I've also pumped $50,000+ into my education (undergrad, postgrad, bunch of industry qual) over this period
• I've got a deposit ready to go 20% down on IP3 or maybe PPOR, holding off as I'm thinking about moving.
• I'm currently working on my goal of a $100k+ ETF portfolio. Probably about 14 months away at this rate.

Current strategy/plan:

• Live a nice but fairly inexpensive lifestyle
• Save up a 20% deposit. Buy a property that is ideally neutral or slightly neg pre-tax, pos after tax (ideally pos, but hard to find)
• Start saving again. When I've got another 20% deposit, buy again.

My goal is to acquire another 5 properties over the next 15 years (slow and steady with a nice low lvr that goes down over time, I could grow a lot faster by re-drawing and using that to fund purchases, but I don't ~need~ that much money and the risk doesn't seem worth it to me) plus hopefully a nice ETF & stock portfolio. Once I've done that I'll re-assess.

 

Good on you too. You have bought a few IP and investing in the most important thing 'YOURSELF'. That's a good sign
I am not usually critical of number of IPs, costs and values posted, but just to give you dose of your own medicine, I will just highlight some.

You mentioned a fair few times during your last outburst in relation to the young buyer who 'just got lucky' buying in Sydney at the right time. I see now why you were so vocal, as doesn't seem like you managed to 'find a lucky cycle' with your holding that you bought in 2011. I am not sure where you bought it, but 15% CG in almost 5 years looks a bit uninspiring to me, especially when yield is not super spectacular. For e.g a property I bought late 2011 around 480K is now market valued at 800K. Yes, I got lucky. But, I did not stop there.

You dont ~need~ that money, but some people do and some people ~want~, so they go more aggressive than your 'buy once in a blue moon' strategy. Why push down your ~ don't needs~ down others throats? Every one is different, no?

 

Well done. Keep it up

I also like that you wrote bank val and market val.

 

I see an issue with this and with your "market value" figures.

If the banks are putting their coconuts on the line and using"a dodgey bank val" as you put it, that's their business. Take the money and run! ! Forget the "market val" as you're not selling you're refinancing and getting every penny out of that sucker! And the valuers are experts in their field so most cases correct.

Have a listen to the recent property couch podcast with api editor @Daisycutter4 and get an insight to valuers. They know their stuff!!

 

I only use market value when tracking my wealth. And I love using bank values to refinance and take the extra cash.

 

Yep. Market value just just show you how much the market has dropped too

 

Some people have an unrealistic view of their properties market value. Can only really know if you try to sell.

 

If they know their stuff how did I get a 17% difference or 110k in full bank val just weeks apart (640k vs 750k) for a property in Melbourne? FYI the 750k is still below what would be MV.

Further this property was 10 months ago valued at 600k, does this mean the property has grown 25% in 10 months or if it kept the growth 30% p.a.... Please.

How is it that a property in Brisbane went down 250k after 3 years (2013-2016), yet the median house price for the suburb has increased by ~20% in the same time? Both were paid valuations...

Yup these valuers sure know their stuff.. I would love to know how a vauler has better knowledge then someone who keeps track of the market day in day out. I have inspected nearly every property on the street where I live and have kept track of every sold price for my suburb (5 years worth). I have worked as a REA and have been interested in property for over 10 years. They may have a certificate but that doesn't mean they know real life.

FYI not saying all valuers are the same however I have little faith in their ability to value something when they spend 3 years studying to be 17% off or 110k from full bank vals just weeks apart.

PS not saying I am god's gift to property but I spend far more time investing into property than your regular M&D.

 

You may be the exception to the rule!

That val depends on the context of the original val i guess. what did your broker say?

They still have their areas they constantly monitor so they would be on the ball in most cases. They are also valuing from a security perspective not just "market value" that muppets will pay, then a month later the market tanks